The New Jersey Board of Public Utilities (BPU) issued a show cause Order to Verizon, New Jersey, claiming that it for its failed to provide 100% of the state with 45 Mbps bi-directional services by 2010. Almost 20 years ago, Verizon closed a deal with the State known as Opportunity New Jersey” (ONJ). which raised rates and gave Verizon tax breaks. These excess phone charges (and tax write offs) were to be used to do the upgrades, replacing the old copper wiring with fiber optic services.

The show cause action was started based on complaints by two small towns, Greenwich and Stow Creek of Cumberland County, who are not being served and who also have continuous service quality issues.

Verizon responded (Response 1, Response 2)claiming that it has completed every obligation and that there are 45 Mbps capabilities in every central office in New Jersey. Verizon also claims it has suffered because of changes in the market and they have lost 50% of access lines. and had major financial losses since 2007.

Truth is:

Verizon has overcharged customers over $13 billion dollars from 1993-2009 — thousands of dollars per customer.

Verizon has caused about $225 billion dollars in potential economic growth, as well as economic harms by pulling a ‘bait and switch’ rolling out DSL instead of upgrading the utility to fiber.

Verizon’s FiOS is only in ‘60%’ of 70 municipalities, out of 524 and 155 Munis will never get wired.

We believe Verizon has been manipulating the books to show these losses and the companies’ affiliates, such as Verizon Wireless are dumping their expenses into the local utility, not paying their fair share and are getting other advantages at the expense of New Jersey’s customers and municipalities.

Worse, it is clear that there are ‘behind the scenes’ manipulations of the public going on — Verizon’s end result — Shut down any wireline obligations, push customers onto expensive wireless products and services, (which don’t have the same customer obligations) and cut deals with the cable companies, thus not competing.Verizon recently cut 336 NJ wireline employees who do repairs, has stopped expanding FiOS and has announced it is abandoning DSL.

This is not a New Jersey problem alone. It is a Verizon and AT&T problem as this is happening throughout America in almost every state.

SENDING COMMENTS: Send Comments to board.secretary@bpu.state.nj.us. These written comments must be received by May 16, 2012. Comments should be identified with the heading I/M/O the Board’s Order to Show Cause Verizon Opportunity NJ Committments Docket No. TO12020155

READ THIS AND SAY: I Agree with New Networks Institute’s Comments — and anything else you want to add.